How Private is My File with a Credit Report Company? (cont.)
Contributed by Melanie Vannuys
How Does A Credit Report Company Give Out My Information?
A credit bureau does not make the decisions that approve or deny your application for credit -- they merely serve as a company which supplies your credit report to qualified inquirers. However, they do provide the potential lender with the information that will help make the lender's decision. A number of factors on your credit report add up to your credit score. This number is actually what lenders base their ultimate decision on. The credit score is based upon the number of accounts you have open and your payment history for each.
The number can also be affected by how many credit cards or loans you've applied for in a certain amount of time. Too many applications can have a negative effect on your credit score.
How Do I Find Out What A Credit Report Company Is Saying About Me?
Everyone is entitled to a free copy of their credit report during a twelve-month time period. You can get this by either writing to one of the three credit bureaus, Experian, Equifax or TransUnion or depending on where you're located in the United States, by visiting www.annualcreditreport.com. The website was rolled out on December 1, 2004 and will make its way across the country until September 30, 2005, at which time everyone in the United States can visit the site and request their free copy.
Obtaining a copy of your credit report is important for a number of reasons. It gives you the opportunity to find and correct any inaccurate information. It's also smart to read your credit report before applying for a new car or mortgage loan - that way when you go to the lender, you're prepared for what may happen.
